S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7089
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               April 5, 2019
                                ___________
 
 Introduced  by M. of A. ORTIZ -- read once and referred to the Committee
   on Ways and Means
 
 AN ACT to amend the tax law, in relation to the imposition of  a  corpo-
   rate welfare tax; and to amend the labor law, in relation to prohibit-
   ing discrimination against individuals receiving federal benefits

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The tax law is amended by adding a new article 9-B to  read
 as follows:
                                ARTICLE 9-B
                           CORPORATE WELFARE TAX
 SECTION 230. DEFINITIONS.
         231. IMPOSITION OF TAX.
         232. RETURNS AND PAYMENT OF TAX.
         233. DEPOSIT AND DISPOSITION OF REVENUE.
   § 230. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE, THE TERM:
   1.  "LARGE  EMPLOYER"  SHALL MEAN, WITH RESPECT TO A CALENDAR YEAR, AN
 EMPLOYER WHO EMPLOYED AN AVERAGE OF AT LEAST FIVE HUNDRED  EMPLOYEES  ON
 BUSINESS  DAYS  DURING  THE  PRECEDING CALENDAR YEAR AND HAS AN OFFICER,
 AGENT, TRUSTEE OR REPRESENTATIVE WITHIN THE STATE. FOR THE  PURPOSES  OF
 DETERMINING EMPLOYER SIZE:
   (A)  ALL  PERSONS  TREATED AS A SINGLE EMPLOYER UNDER SUBSECTIONS (B),
 (C), (M), OR (O) OF SECTION FOUR HUNDRED FOURTEEN OF THE INTERNAL REVEN-
 UE CODE OF 1986 SHALL BE TREATED AS 1 EMPLOYER.
   (B) IN THE CASE OF AN EMPLOYER WHICH WAS NOT IN  EXISTENCE  THROUGHOUT
 THE  PRECEDING CALENDAR YEAR, THE DETERMINATION OF WHETHER SUCH EMPLOYER
 IS A LARGE EMPLOYER SHALL BE BASED ON THE AVERAGE  NUMBER  OF  EMPLOYEES
 THAT  IT  IS  REASONABLY  EXPECTED SUCH EMPLOYER WILL EMPLOY ON BUSINESS
 DAYS IN THE CURRENT CALENDAR YEAR AS DETERMINED BY THE COMMISSIONER.
   (C) ANY REFERENCE IN THIS ARTICLE  TO  AN  EMPLOYER  SHALL  INCLUDE  A
 REFERENCE TO ANY PREDECESSOR OF SUCH EMPLOYER.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10717-01-9

 A. 7089                             2
 
   2.  "QUALIFIED EMPLOYEE BENEFITS" SHALL MEAN, WITH RESPECT TO A PERSON
 FOR A TAXABLE YEAR, THE SUM OF THE QUALIFIED FEDERAL  BENEFITS  RECEIVED
 BY INDIVIDUALS WHO ARE EMPLOYEES OF SUCH PERSON FOR SUCH TAXABLE YEAR.
   3.  "QUALIFIED  FEDERAL BENEFITS" SHALL MEAN, WITH RESPECT TO AN INDI-
 VIDUAL, THE FOLLOWING:
   (A) THE DOLLAR VALUE OF SUPPLEMENTAL NUTRITION  ASSISTANCE  FOR  WHICH
 THE  HOUSEHOLD, AS DEFINED IN SECTION 3(M) OF THE FOOD AND NUTRITION ACT
 OF 2008, THAT INCLUDES SUCH INDIVIDUAL IS ELIGIBLE;
   (B) THE DOLLAR VALUE OF MEALS THAT SUCH INDIVIDUAL  OR  DEPENDENTS  OF
 SUCH  INDIVIDUAL  ARE  ELIGIBLE FOR UNDER THE SCHOOL LUNCH PROGRAM UNDER
 THE RICHARD B.  RUSSELL NATIONAL SCHOOL LUNCH ACT AND THE SCHOOL  BREAK-
 FAST PROGRAM UNDER SECTION FOUR OF THE CHILD NUTRITION ACT OF 1966;
   (C) THE AGGREGATE AMOUNT OF THE MONTHLY ASSISTANCE PAYMENTS FOR RENTAL
 OF  A DWELLING UNIT THAT THE HOUSEHOLD OF SUCH INDIVIDUAL IS A MEMBER OF
 IS ELIGIBLE TO HAVE MADE ON ITS BEHALF PURSUANT TO SECTION EIGHT OF  THE
 UNITED STATES HOUSING ACT OF 1937; AND
   (D) THE AMOUNT OF PAYMENTS MADE UNDER SECTION 1903 OF THE SOCIAL SECU-
 RITY  ACT  WITH  RESPECT  TO  EXPENDITURES MADE BY A STATE UNDER A STATE
 MEDICAID PLAN UNDER TITLE XIX OF SUCH ACT, OR A WAIVER OF SUCH PLAN, FOR
 MEDICAL ASSISTANCE FOR SUCH INDIVIDUAL OR FOR DEPENDENTS OF  SUCH  INDI-
 VIDUAL.
   4. "EMPLOYEE" SHALL MEAN:
   (A) ANY FULL-TIME OR PART-TIME EMPLOYEE;
   (B)  ANY  INDIVIDUAL  WHO  IS  A  FULL-TIME  OR  PART-TIME INDEPENDENT
 CONTRACTOR, INCLUDING ANY EMPLOYEE OF SUCH INDEPENDENT  CONTRACTOR,  AND
 PROVIDES SERVICES TO THE EMPLOYER, UNLESS:
   (I)  THE  INDIVIDUAL  IS FREE FROM CONTROL AND DIRECTION IN CONNECTION
 WITH THE PERFORMANCE OF THE SERVICE, BOTH UNDER  THE  CONTRACT  FOR  THE
 PERFORMANCE OF SERVICE AND IN FACT;
   (II) THE SERVICE IS PERFORMED OUTSIDE THE USUAL COURSE OF THE BUSINESS
 OF THE EMPLOYER; AND
   (III) THE INDIVIDUAL IS CUSTOMARILY ENGAGED IN AN INDEPENDENTLY ESTAB-
 LISHED  TRADE, OCCUPATION, PROFESSION, OR BUSINESS OF THE SAME NATURE AS
 THAT INVOLVED IN THE SERVICE PERFORMED; AND
   (C) ANY INDIVIDUAL WHO IS A FULL-TIME  OR  PART-TIME  JOINT  EMPLOYEE,
 PROVIDED  THAT THE EMPLOYER POSSESSES, RESERVES, OR EXERCISES SUFFICIENT
 DIRECT OR INDIRECT CONTROL OVER THE ESSENTIAL TERMS  AND  CONDITIONS  OF
 EMPLOYMENT OF SUCH EMPLOYEE.
   §  231. IMPOSITION OF TAX. NOTWITHSTANDING ANY OTHER PROVISION OF THIS
 CHAPTER, OR OF ANY OTHER LAW, FOR TAXABLE YEARS BEGINNING ON  AND  AFTER
 JANUARY  FIRST,  TWO THOUSAND TWENTY, AN ANNUAL TAX IS HEREBY IMPOSED ON
 EVERY TAXPAYER WHO IS A LARGE EMPLOYER EQUAL TO ONE HUNDRED  PERCENT  OF
 THE  QUALIFIED  EMPLOYEE BENEFITS WITH RESPECT TO SUCH TAXPAYER FOR SUCH
 TAXABLE YEAR.
   § 232. RETURNS AND PAYMENT OF TAX. 1. EVERY TAXPAYER  SUBJECT  TO  TAX
 UNDER  THIS  ARTICLE  SHALL, ON OR BEFORE THE FIFTEENTH DAY OF THE FIFTH
 MONTH FOLLOWING THE CLOSE OF EACH OF ITS TAXABLE YEARS, MAKE AND FILE  A
 RETURN WITH THE TAX COMMISSION SETTING FORTH SUCH INFORMATION AS THE TAX
 COMMISSION  MAY  PRESCRIBE. EVERY TAXPAYER WHICH CEASES TO BE SUBJECT TO
 THE TAX IMPOSED BY THIS ARTICLE SHALL MAKE AND FILE A  RETURN  WITH  THE
 TAX  COMMISSION  ON  THE  DATE  OF SUCH CESSATION, OR AT SUCH OTHER TIME
 WHICH THE TAX COMMISSION MAY REQUIRE,  COVERING  EACH  TAXABLE  YEAR  OR
 PERIOD  FOR  WHICH  NO  RETURN WAS THERETOFORE FILED, SETTING FORTH SUCH
 INFORMATION AS THE TAX COMMISSION MAY REQUIRE. EVERY TAXPAYER SHALL ALSO
 FILE SUCH OTHER RETURNS AND FURNISH SUCH OTHER FACTS AND INFORMATION  AS
 THE TAX COMMISSION MAY REQUIRE IN THE ADMINISTRATION OF THIS ARTICLE.

 A. 7089                             3
 
   2.  THE  TAX IMPOSED BY SECTION TWO HUNDRED THIRTY-ONE OF THIS ARTICLE
 SHALL BE PAYABLE TO THE TAX COMMISSION IN FULL AT THE TIME THE RETURN IS
 REQUIRED TO BE FILED. SUCH TAX IMPOSED ON ANY TAXPAYER WHICH  CEASES  TO
 BE  SUBJECT  TO  THE TAX IMPOSED BY THIS ARTICLE SHALL BE PAYABLE TO THE
 TAX  COMMISSION  AT  THE TIME THE RETURN IS REQUIRED TO BE FILED AND ALL
 OTHER TAXES OF ANY SUCH TAXPAYER, WHICH PURSUANT TO  THE  PROVISIONS  OF
 THIS  SECTION  WOULD  OTHERWISE  BE  PAYABLE SUBSEQUENT TO THE TIME SUCH
 RETURN IS REQUIRED TO BE FILED, SHALL NEVERTHELESS BE  PAYABLE  AT  SUCH
 TIME.
   3.  THE  TAX  COMMISSION  MAY GRANT A REASONABLE EXTENSION OF TIME FOR
 FILING A RETURN OR FOR PAYMENT OF A TAX IMPOSED BY  THIS  ARTICLE  UNDER
 SUCH CONDITIONS AS IT DEEMS JUST AND PROPER.
   §  233.  DEPOSIT  AND  DISPOSITION OF REVENUE. ALL TAXES, INTEREST AND
 PENALTIES COLLECTED OR RECEIVED BY THE TAX COMMISSION UNDER THIS ARTICLE
 SHALL BE DEPOSITED AND DISPOSED OF PURSUANT TO THE PROVISIONS OF SECTION
 ONE HUNDRED SEVENTY-ONE-A OF THIS CHAPTER.
   § 2. The labor law is amended by adding a new section 215-d to read as
 follows:
   § 215-D. PROTECTION OF INDIVIDUALS RECEIVING  FEDERAL  BENEFITS.    NO
 EMPLOYER,  PUBLIC  OR  PRIVATE, OR SUCH EMPLOYER'S DULY AUTHORIZED AGENT
 SHALL MAKE INQUIRIES OF AN APPLICANT FOR EMPLOYMENT, OR  OTHERWISE  SEEK
 INFORMATION  ABOUT  SUCH  AN APPLICANT, INCLUDING THROUGH THE USE OF ANY
 FORM OR APPLICATION, RELATING TO WHETHER SUCH APPLICANT RECEIVES FEDERAL
 BENEFITS.
   § 3. This act shall take effect immediately.